Oslo, 16.02.24
Total for 2023, the return was 1.5 percentage points better than the benchmark index. This marked the tenth consecutive year of Folketrygdfondet's active management delivering excess returns. Since 2007, the excess return now accounts for nearly 15 percent of the fund's value.
"We achieved the second-best result in the fund's history in 2023, but this must be viewed in the context of the decline in value in 2022. We are pleased to once again deliver high excess returns in both the equity and fixed income portfolios. Our management has also consistently delivered good results over time," says CEO Kjetil Houg.
Key figures from the report:
- The return on the equity portfolio was 13.56 percent in 2023. This is 1.12 percentage points higher than the equity benchmark.
- The return on the fixed income portfolio was 8.15 percent. This is 2.00 percentage points higher than the fixed income benchmark.
- Folketrygdfondet's active management has contributed over NOK 52 billion in excess returns to the community since 2007.
- Over the past decade, the Government Pension Fund Norway has achieved an annual return of 7.82 percent, meaning Folketrygdfondet has outperformed the benchmark by 0.94 percentage points annually during the same period.
- The Government Pension Fund Norway had a return of 4.10 percent in the fourth quarter.
Ownership exercise:
Folketrygdfondet is a responsible manager in line with the mandate set by the Ministry of Finance and has clear expectations for the companies in the portfolio. In 2023, Folketrygdfondet voted at 155 general meetings and had 221 dialogue meetings with companies. Additionally, Folketrygdfondet voted at 12 bondholder meetings and had 175 meetings with bond issuers.
"Our ambition is for the companies to perceive us as a good owner and creditor contributing to long-term value creation," says Houg.